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Your Money

News/Business. Christine Romans breaks down the financial news of the week.

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CNN

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00:31:00

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TOPIC FREQUENCY

Us 5, U.s. 4, Humana 3, America 3, Starbucks 3, Richard Roth 2, Howard Schultz 2, Coca-cola 2, Philips Sonicare 2, Rachel 2, France 2, New York 2, Humira 2, Europe 2, Sudafed 2, United States 2, Starbucks Board 2, Gekko 1, Sears 1, Vitac 1,
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  CNN    Your Money    News/Business. Christine Romans  
   breaks down the financial news of the week.  

    November 9, 2013
    11:00 - 11:31am PST  

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rightful owners? a unique love triangle is the subject of a supreme court case that involves a cheating husband, the wife, the mistress and a chemical weapons treaty. we'll see you back here for the latest news in 30 minutes. but first, "your money" starts right now. -- captions by vitac -- www.vitac.com from 140 characters to tens of billions of dollars, twitter now a public company. what's that mean for you money? i'm poppy harlow in today for christine romans. investors went crazy for twitter on the first day of trading, it opened at $45.10, more than a 70% premium to the offering price. it stayed in that range for much of the day closing just below 45 days a share when that closing bell rang at 4:00 p.m. that stock price put the company's value at just about $25 billion. $25 billion. let's talk about that. that's a hard number to grasp.
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i want to bring in matt mccall, the president of penn financial and rachel sklar, an avid twitter user. when i see that number, $25 billion valuation, bigger than tiffany, hershey, all these companies, why do you think it priced that way and there was this investor reaction, matt? >> when you feel like you have a connection with something, especially a company like this, you want to be involved. that's a big reason a stock opened so high yesterday. the average investor feels i know twitter, i feel it. i want to buy it. >> you and i have talked about this. does that mean you should invest in it just because you know it. the fundamentals, the bids plan, where is the profit going to come from? >> just because you use twitter doesn't mean it's a great investment. how does twitter make money? most people don't know. they make it by advertising. most people don't understand that, they're actually losing
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money. >> rachel, you're a huge twitter user. it's helped you a lot professionally. >> and personally. >> a lot of fun on it. i'm wondering what your take is in terms of what it has done for you in your business and where the advertising needs to go. >> i've been on it since 2008. when i was on twitter i was working at the "huffington post" covering the presidential election in 2008. the first early adopters in media were on twitter. that's how i started to consume my news. i remember noticing it in the conventions in 2008, i wasn't looking at the news sites, just looking on twitter. it's become just this first line of news consumption for most people. but it's so much more than that for me personally. as an activist it helps me get my message out. as someone who likes to engage across a broad variety of industries, i can easily do so and find the common denominator. i do a lot of work around women. i can do that across every industry. >> let me ask you about
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advertising. i noticed a big ad in my twitter feed. is advertising going to flow smoothly and be adopted the way it needs to be for this company to bring in a lot of money? >> that remains to be seen. there's a lot of creative stuff. having promoted tweets in your feed is a pretty prosaic way of making money. i'm not sure i ever clicked on a promoter tweet. last night when i was clicking on the "scandal" hash tag, there were tweets there that had nothing to do with "scandal." >> matt, do we know the plan for advertising, a lot of what they're planning to do, you mentioned the tv show "scandal," rachel. they have television viewers that have these whole conversations. but do we know enough about the ad plan. >> they get 85% of their revenue from advertising. they're projecting that $600 million this year, close to $1 billion next year. that's nice growth. the problem is it can't rely
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that much on advertising. you mentioned tv. the demographic between 25 and 34 years old, half the people that watch tv in that age group are tweeting about the show they're watching. if that's not an opportunity to go to the networks or go to products, coca-cola, as you're watching, whatever a show may be on tv right now, coca-cola can put ads in there. that's half the people watching, demographics that advertisers want. if they can take advantage, that would ex-ploet twitter. >> so much meta data, geographic, who these people are following. there's a lot of that that could be targeted. there's so much more that they can do. they haven't even touched twitter as its own platform. facebook did facebook live. it had events that were only on facebook. twitter actually is a conduit for events hosted by other people. they haven't even explored their own possibility as a media company. i think that could be very exciting. >> that's a really good point, especially how valuable all that data is, that we are freely, freely putting out there for
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them. thank you both, matt and rachel. thanks for coming in. for more stories that matter, 60 seconds on the clock. christine romans has this week's "money time." >> men aren't pulling their weight at home. data shows women are working more outside the home, but still doing the bulk of cooking and cleaning. in the u.s. both men and women work about 50 hours a week. men spend most of the time on the job while women spend it working at home. the former king of the smart phones, blackberry fired the ceo this week and is giving up the search for a buyer. black friday? try thanksgiving thursday. kmart is opening at 6:00 a.m. on thrg day and it will stay open for 41 straight hours. macy's, sears, jc penney, kohl's and toys r us will open on turkey day. german authorities recovered paintings confiscated by the
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nazis valued at more than $1 billion. it was found in an elderly man's munich apartment. we could soon travel like the jetson's. a hybrid vehicle can drive on normal roads or transform into a two-seater airplane. you can now indulge in chocolate covered potato chips. lay's hopes to get the attention of millennial women with this new snack. coming up, as technology soars, we say good-bye to some old favorites. on the week twitter went public, america says bye-bye to blockbuster dvds. is what makes . we take the time to get to know you and your unique health needs. then we help create a personalized healthcare experience that works for you. and you. and you. with 50 years of know-how, and a dedicated network of doctors, health coaches, and wellness experts, we're a partner you can rely on -- today, and tomorrow. we're going beyond insurance
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to become your partner in health. humana. to become your partner in health. explaining my moderate to severe so there i was again, chronic plaque psoriasis to another new stylist. it was a total embarrassment. and not the kind of attention i wanted. so i had a serious talk with my dermatologist about my treatment options. this time, she prescribed humira-adalimumab. humira helps to clear the surface of my skin by actually working inside my body. in clinical trials, most adults with moderate to severe plaque psoriasis saw 75% skin clearance. and the majority of people were clear or almost clear in just 4 months. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common.
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sleep number. comfort individualized. you probably use twitter and this week you can own a piece of the company if you want. as we welcome the future, we also say good-bye to some of the past. blockbuster, you know the company, it's closing its remaining 300 u.s. company-owned stores and shuttering the dvd by mail service. it's more about the disruptive
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power of technology. our own richard roth joins me in new york. >> we know all these brands, products, polaroid and others who seem to disappear. as you mentioned, dish network which owns blockbuster stores is closing all of them. there were 9,000 of them just a few years ago. now only a handful of franchise independent-owned places will survive. if this is the video rental, it would be called digital kills again and again. >> you look like a new release. >> reporter: now there's nothing new at blockbuster, the remaining hundreds of video rental stores are closing. >> nobody wants to buy or rent videos anymore. it's technology. >> reporter: this manhattan black buster is now a pop-up halloween store. >> do we need blockbuster? do you use blockbuster? >> i'm not going to let you into my home to see my video collection. >> the ruthless march of
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changing consumer taste led to a bloody end for another physical media icon. >> i think it's kind of sad. i used to love going with the family. >> reporter: nostalgia mocked on "south park." >> all on blu-ray or dvd. >> you should try to get on the ancient civilization sew so people could see how cultures used to live. >> i'm upset it's gone. i don't think it will be back considering all the latest in technology that people have now. >> reporter: "seinfeld" reminds us how people used to get and return their movies. >> $3.49. >> it says $1.49. you didn't rewind. there's a $2.00 charge. >> reporter: people used to have t leave their homes to obtain "rocky 4." the onion news network claims there are stores. >> customers exchanged money in an archaic system called renting. >> the tour is amazing. it's like stepping into a time machine. >> reporter: do you ever use 8 track tapes anymore? >> i've never seen an 8 track
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tape. >> reporter: cds, dvds and video games are also disappearing under a digital tidal wave. after looking at a tiny video screen in 1987, technology analyst gordon gekko in "wall street" saw it coming. it's difficult to keep up with all the changes in technology. would you like a one-year-old newspaper? in greenwich village people can touch the classics, the music al burn stubbornly survives. >> it's part of history. it's one of those things that you learn to appreciate. it's art. >> people feel like they're walking into a time capsule. >> reporter: the owner makes house calls to record owners to evaluate their collections. kids, doctors used to do that, too. everybody i asked on the street looked at me as if i was from a time capsule. they were saying, look, i get it from netflix or online streaming
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or whatever. >> certain lie not an 8 track. >> do you have any record albums of course? >> of course. >> what do you have? >> i have my parents' collection. that's what i have. >> lawrence welk, maybe some beatles. >> point taken. richard roth, thank you so much. i appreciate it. up next, a surprising jump in hiring last month despite the government shutdown. here is the question. are there enough jobs for those fighting for america's freedom? >> these young men and women, mostly young men and women don't want similar think, and they sure as heck don't want charity. what they're looking for are meaningful careers. >> i'll talk with former secretary of defense robert gates and starbucks ceo howard schultz next. congested. beat down. crushed. as if the weight of the world is resting on your face.
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a big surprise in the october jobs report. take a look at the headline number, 204,000 jobs created last month. unemployment staying relatively steady at 7.3%. the big question in this report was were we going to see a skewed report because of the few weeks in october when the federal government was closed and all those government workers were furloughed, was that going to have a big impact? it frankly did not have a big impact. one caveat, though, in this report, even though this number, 204,000, shows the third best month in terms of job gains for the whole month, we still have 11.3 million americans that are unemployed and 4.1 million of them who have been out of work for six months or longer. there's still a lot of pain in the labor market. as we turn to monday, the eyes of wall street will turn to veterans as they ring the opening bell in honor of veterans day. but photo ops aside, what many veterans want from big business is a job. the unemployment rate for
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veterans many united states is 6. 9%, compared with the national jobless rate of 7.3%. look at the rate for vets who fought in the wars in iraq and afghanistan since 2001. that is 10%. those numbers have improved a bit over the past few years with broader job gains. also helping, some major corporations stepping up to help get vets back to work. here is an example. general electric hired nearly 7,000 veterans over the past year. shipping giant u.p.s. added 2800 vets to its payroll since march. jpmorgan chase brought on 6,000 since 2011. the largest u.s. employer, walmart, hired more than 20,000 vets this past year, part of a pledge to hire 100,000 over the next five years. this week starbucks made its own pledge. it says it will hire 10,000 veterans or military spouses over the next five years. i sat down with starbucks ceo howard schultz and former u.s.
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defense secretary robert gates who sits on the starbucks board, and i asked them why are they doing this now? >> this is a time in america where we have an obligation and a responsibility to do the right thing. but in addition to that, these are young people who have significant value to add to the workplace and to companies. great values, leadership skills and an opportunity i think to really make a difference. >> secretary gates, you have said our veterans with one of the mostunder utilized talent pools in this country. you sit on the starbucks board. i'm interested to know what advice did you give when the company was forming this initiative, especially when it comes to taking all the talents from the armed services into the private sector. it's sometimes hard to translate on a resume but it really pays off in the workplace. >> that's a very good point. over the next five years, another million men and women will come out of the military
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and into civilian life, and they bring with them extraordinary skills. they first bring great technical skills from logistics to supply chain management, advanced electronics and countless others. but they also have in common unique leadership skills, the ability to lead small teams, to lead people who are mission oriented, to operate under tight deadlines and so on. but i'll tell you one other thing. these young men and women, mostly young men and women do want sympathy. they sure as heck don't want charity. what they're looking for are meaningful careers, fulfilling careers where they can make a decent living and continue to contribute as they have been contributing. >> in reading for this, secretary gates, one thing i did find is especially veterans with disabilities, some with ptsd but are still able to work find it
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very challenging to find work and employers that will hire them. do you think that that has been a big obstacle, secretary gates, to getting these veterans to work? >> it's been a dilemma for us, frankly. for me when i was in the department of defense and for others, we obviously want to call attention to post-traumatic stress so that the troops who may have experienced some of it get treatment and care for themselves. but at the same time we don't want to convey in some way that these returning veterans are somehow impaired giving these folks an opportunity and a fulfilling career opportunity is probably the very best treatment they can get. >> these are extraordinary people who have defended the country and deserve a unique opportunity, and i think we're going to try at starbucks to do
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everything we can to give it to them. >> now the real challenge is going to be helping these veterans build careers from those jobs. there are 21.3 million veterans in the united states. that is more than the number of people who live in new york, los angeles, chicago, houston and philadelphia combined. residents of fukushima, japan, still struggling to clean up more than two years after the meltdown at the fukushima daiichi nuclear plant. a new very controversial documentary here on cnn argues a new generation of nuclear reactors is the only way to power the future. >> this is not a dream. this is not somebody's calculations on a piece of paper. this is real. we know how to do these things. >> nuclear power, is it dangerous, is it green, is it necessary? that's next. more than a new interior lighting system. ♪
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♪ that's...wifi friendly. customer erin swenson ordebut they didn't fit.line customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics.
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is what makes us different. we take the time to get to know you and your unique health needs. then we help create a personalized healthcare experience that works for you. and you. and you. with 50 years of know-how, and a dedicated network of doctors, health coaches, and wellness experts, we're a partner you can rely on -- today, and tomorrow. we're going beyond insurance to become your partner in health. humana. when you turn on one of these, do you think about where
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the electricity comes from? two-thirds of the electricity in united states comes from fossil fuels, chiefly coal and natural gas. 13% comes from renewables, hydro, wind and solar. 19% comes from nuclear power plants like this. the department of energy predicts that electricity production around the world will nearly double by 2040. supporters of nuclear power say that no other source can deliver clean, reliable energy on a massive scale. but those same supporters admit when it goes wrong as it did at fukushima, it can be catastrophic. >> there's no other energy source that does this, that leaves huge area contaminated, by this strange invisible presence which you know is potentially deadly. >> that was a clip from "pandora's promise," airing right here on cnn. the film's director robert stone is here with me now. thanks for coming in. i appreciate it. >> great to be here.
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>> i watched it. it's fascinating. the first thing i thought was this nimby, not in my back yard. even if you have people supporting nuclear power, oftentimes you find they don't want it in their back yard. how do you tackle that given the risks that we all know and we saw at fukushima. >> nobody wants to live next to any power plant at all. when giant wind farms are put up on the beautiful ridge lines, i live in the catskills, people are against that kind of thing, too. >> there's a safety concern that people have, not wanting it in their back yard. >> that's right. i think one has to step back and look at the broader context. we've got 440 reactors all over the world. we've had nuclear power for about 50 years now. out of that we've had three major accidents, fukushima, chernobyl and three mile island, only one of which there's been any death or sickness which was chernobyl. according to the world health organization and the best science we have, only 60 people were known to have been killed
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after 25 years as a consequence of chernobyl. i know it's counterintuitive, but that's the fact. you look back at the big picture on fossil fuels which again according to the world health organization killed 3 million people every year, 3 million people every year just from particulate pollution. that doesn't account for ocean acid case, climate change and all that. the surprising thing to me on the whole thing with safety is nuclear power is one of the safest forms of energy that we have. >> when it goes wrong, it goes terribly wrong, like at fukushima. >> absolutely. that was an old 1960's era reactor. the thing that excited me about this and the thing that excited environmentalists was the new reactors, even the ones built now, that are orders of magnitude safer and the ones that will come online in a decade or two where the very physics of them prevent a
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meltdown. >> german chancellor angela merkel was a huge supporter of nuclear. after fukushima she got a report and studied it and decided for that entire country, germany, to completely phase out nuclear by 2022. france, on the other hand, gets about 75% of its electricity from nuclear. what do you think we can learn from those two european countries? >> there you've got a very interesting example. as you said, france, 75% to 80% nuclear power, has the cleanest air in europe, cheapest electricity in europe and the lowest co2 emissions per capita. you have germany next door going with renewables. that's great. keep in mind they're 5% solar and 7% from wind. so it's still a huge amount of energy coming from other sources and they're still building coal plants. there you have a great example of a country going gangbusters for renewables and a country dependent on nuclear. >> we will certainly see what happens. controversial film.
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fascinating. encouraging people to watch it and weigh in on the debate. thank you for squloining us. >> thank you for having me. thanks for spending this portion of your weekend with us. christine romans will be with you at 9:30 a.m. and 2:00 p.m. here on cnn. have a great weekend. hello everyone. i'm fredricka whitfield. welcome to the cnn newsroom. officials in the philippines say it will take days to find out how deadly the storm was. the government confirmed 138 deaths. the red cross claims as many as 1200 killed. 1,000 in the cy